In my previous article on US Treasury savings bonds, I wrote about Series I savings bonds.   I thought that today would be a good day to discuss the Series I bonds in a little more detail.   You see, the Bureau of the Public Debt sets the earnings rate for I-series bonds and EE bonds every May and November.  The Bureau of the Public Debt just set the earnings rate for the Series I savings bonds to 4.84%.

How Do I-Series Bonds Work:

eries I Savings Bonds have and earnings rate which combines a fixed rate with a semiannual inflation rate.  The fixed rate for the bond applies for the life of the bond.  But the inflation rate will change every 6 months.  Series I bonds purchased from May through October will have an earnings rate of 4.84%.  This 4.84% is calculated by combining a fixed rate of 0.00% with the annualized rate of inflation which is currently 4.84%.  The Bureau of the Public Debt determines the inflation rate using the  the Consumer Price Index for all Urban Consumers (CPI-U). The fixed rate on the I-series bonds for the entire 30-year life of I bonds purchased during this 6 month period.

In the previous six month period the series I savings bonds had a fixed earnings rate of 1.2%.  This means that us treasury savings bonds purchased in the prior six month period earn 1.2% plus the rate of inflation.  While the old rate of 1.2% is much better than zero percent, the series I savings bonds can still be a great addition to your high interest rate savings.